Boat Repair And Dry Dock Insurance Policy Information
Boat Repair And Dry Dock Insurance. Dry docks are specialized facilities that are designed to have the ability to be filled with water, allowing boats to enter, as well as be drained.
Boat repair and dry dock operators provide service to both private and commercial boat or yacht owners. Some offer storage facilities, either wet (in the water) or dry (out of the water). Vessels stored in dry dock may be kept indoors or outdoors in a yard.
Other services may include a marina, retail sales of accessories or supplies, painting, cleaning, refitting, or winterizing. There may be a launching slip for customers' use. The operator may travel off-premises to pick up or return larger vessels for storage or repair.
Seasonal fluctuation of jobs and labor is common, and some work may be subcontracted.
Dry docks may be used to perform regular maintenance on boats - removing corrosion and barnacles and performing a fresh paint job, for example. These facilities can also host boats as more extensive repairs are carried out, as well as during their construction.
Dry docks and boat repair companies play an essential role in prolonging the lifespan of diverse watercraft, whether privately or commercially owned, and keeping them seaworthy. While dry docks and boat repair ventures can be very successful, these commercial ventures also face a multitude of risks.
Each has the potential to bring the business down, and for that reason, it is imperative for these companies to take a series of proactive steps to protect their financial health.
What role does insurance play in this, and what types of boat repair and dry dock insurance coverage might be needed? Read on for further information.
Boat repair and dry dock insurance protects your ship repairing and/or building business from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked boat repair and dry dock insurance questions:
- What Is Boat Repair And Dry Dock Insurance?
- How Much Does Boat Repair And Dry Dock Insurance Cost?
- Why Do Boat Repair And Dry Docks Need Insurance?
- What Type Of Insurance Do Boat Repair And Dry Docks Need?
- What Does Boat Repair And Dry Dock Insurance Cover & Pay For?
What Is Boat Repair And Dry Dock Insurance?
Boat Repair and Dry Dock insurance is a type of insurance coverage designed specifically for boat owners. It protects the owner against any losses or damages that may occur while their boat is undergoing repairs or undergoing maintenance work in a dry dock.
This insurance coverage usually covers expenses related to repairs, including labor, materials, and equipment costs, as well as loss of use and business interruption expenses. In addition, the policy may also cover the costs of towing the boat to the repair facility and other miscellaneous expenses incurred during the repair process.
This insurance is important for boat owners as it provides financial protection for their vessel and helps them avoid unexpected expenses in the event of any damage or repairs.
How Much Does Boat Repair And Dry Docks Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small boat repair and dry dock facilities ranges from $87 to $119 per month based on location, size, revenue, claims history and more.
Why Do Boat Repair And Dry Dock Need Insurance?
Dry docks and boat repair facilities face many of the same risks that will be familiar to most business owners, while additionally taking on industry-specific hazards that are partly related to the fact that during a boat repair, expensive third party property will be in their custody.
Dry docks and boat repair facilities may be affected by acts of nature such as floods, serious storms, and hurricanes, which have the potential to lead to extensive damage as well as prolonged business interruptions.
Theft, vandalism, and accidents caused by human error are three further examples of perils that threaten your physical assets, but valuable equipment you rely on to carry out your boat repair services may also malfunction and break down.
In addition, the fact that dry docks and boat repair companies may be sued for a variety of reasons poses a very real risk. Even if a claim is ultimately dismissed, litigation can not only be frustrating and time-consuming, but also extremely expensive.
A client may file a lawsuit if your company accidentally damages their boat, or believes that you made an error in carrying out your repair work. Dry docks and boat repair companies may also face lawsuits if they inadvertently cause damage to a neighboring business, or if an employee is injured at work.
By investing in a comprehensive boat repair and dry dock insurance plan, you ensure that you will not have to face the exorbitant costs associated with these and other perils alone - thereby allowing your facility to recover and thrive once again.
What Type Of Insurance Do Boat Repair And Dry Docks Need?
The exact nature of the insurance coverage a dry dock and boat repair facility should carry depends on numerous factors. The jurisdiction in which your business is based, the type and value of your equipment, the kind of watercraft you maintain and repair, and your number of employees all influence your insurance needs.
Because the process of obtaining adequate coverage can be challenging, dry docks and boat repair facilities should carry out an in-depth evaluation together with a skilled commercial insurance broker. With that in mind, the following types of boat repair and dry dock insurance are crucial:
- Commercial Property - This type of insurance covers your commercial facility as well as many of the contents, with some exceptions, in case your business is struck by perils that include acts of nature, theft, and vandalism. With additional business interruption insurance, you can likewise recover a portion of the revenue you lose to these perils.
- General Liability - Designed to help you cover your legal expenses, which include but are not limited to attorney fees and settlement costs, this form of boat repair and dry dock insurance coverage is essential for almost any business, as it is never possible to anticipate when you may face a third party property damage or personal injury claim.
- Bailee's Insurance - A bailee is any business that temporarily takes custody of client or customer property, such as a boat over the course of repair works. Because commercial property insurance does not protect this third party property, bailee's insurance is another crucial form of coverage.
- Workers Compensation - Should one of your employees sustain an occupational illness or injury, workers' comp will cover both their medical expenses and any lost wages.
Because businesses in this industry may have numerous additional insurance needs, be it in the form of commercial auto insurance, equipment breakdown insurance, or inland marine insurance, it is vital to consult a commercial insurance broker who will help you craft a customized boat repair and dry dock insurance plan.
Boat Repair And Dry Dock's Risks & Exposures
Premises liability exposure is high due to waterfront facilities and the public access to the premises. Tripping and slip and fall hazards are common. Waiting areas should be provided for customers whose vessels are being repaired. Customers should not be permitted access to the service area.
The moving, rearranging and hooking up of owned and non-owned watercraft pose a collision hazard to persons or to property of others. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises are open after dark, adequate lighting and appropriate security for the area must be present.
Watercraft stored outside may pose an attractive nuisance to children and teens, especially during the off season. Chains and fences should be in place to prevent entrance to the premises after hours. Repair operations are the major products/completed operations exposures.
There should be a check-off procedure in place prior to release of the watercraft to the customer to prevent its return with any vital functions not working properly.
General liability policies exclude most watercraft exposures. If boats can be taken onto the water for test drives by employees or customers following repairs, a watercraft or ocean marine protection and indemnity coverage will be needed.
Environmental impairment exposure can be significant due to the storage of gasoline and other flammable liquids in tanks and the disposal of used oils, solvents and other hazardous wastes from repair operations. All above-ground and underground tanks are subject to state or federal regulations and should be routinely tested for leakage.
Adequate procedures should be in place and must be followed to prevent any leakage or contamination. Fuel pumps that are available to the public pose an exposure due to the possibility of spillage into waterways. Contracts should be in place to dispose of all environmentally dangerous chemicals.
Workers compensation exposures are most significant in the repair operation and any transport. Back injuries, hernias, strains and sprains can result from lifting. Repair may involve painting, welding, or work with fiberglass hulls. Safety equipment should be provided. Casual and seasonal labor can impact the ability to control hazards. Turnover may be high.
If large boats are repaired there may be work at heights. Refueling should be done only in well-ventilated areas to minimize inhaling of fumes. Information regarding chemicals should be available to employees along with early warning signs of problems. The transporting of boats from storage to the water may involve cranes, lifts, winches or other heavy equipment, including rails.
There may be Longshore & Harborworkers Compensation Act exposure if work is done on or near the water.
Property exposure comes from the flammable paints, lubricants, oils, degreasers, and solvents used in service and repair operations and the combustibility of watercraft. Flammables must be properly labeled, stored and separated. Spray painting should be conducted in spray booths with good ventilation, UL-approved wiring and fixtures and adequate controls.
Welding is often a part of the repair and body work operation that needs to be evaluated for proper handling of the tanks and gases and adequate separation from other operations with either a separate room or flash/welding curtains. Good housekeeping is critical. Oily rags must be kept in covered metal containers. Work areas must be cleaned regularly and trash removed from the building. Lubricants and fuels should be drained from any watercraft stored during the off-season to reduce the potential for a fire.
Boat repair facilities are often at a distance from fire stations, and access may be difficult due to natural obstructions or poor road quality. Although located near water, lack of equipment, procedures or training may result in a severe fire loss. Wind, wind-driven water and hurricane damage pose catastrophe potential, especially if the operation is close to the water.
Theft is a concern as watercraft can be target items. Appropriate security controls must be taken including physical barriers such as chains, fences, or gates, lighting to deter access to the premises after hours, and an alarm system that reports directly to a central station or the police department.
Crime exposures come from employee dishonesty, theft of money and securities, burglary and robbery. Employee dishonesty is controlled through background checks, inventory monitoring, control of the cash register, and division of duties. Physical audits should be conducted at least annually. Storage and handling of keys presents an often overlooked exposure to theft.
Inland marine exposures come from accounts receivable if the operation offers credit; bailees customers for watercraft in for service, repair or storage; computers used to monitor inventory; goods in transit if the operation delivers watercraft to customers; and valuable papers and records for manufacturers' and customers' records.
Contractors' equipment may include marine railways, hoists and other marine equipment used to move boats in and out of the water, equipment used for lifting and transporting vessels and to maintain the premises. Particular concern should be shown for any item that is used near or in the water. Watercraft stored in the open are particularly susceptible to damage by vandalism and theft.
Lots should be well lighted with chains, fences or gates to prevent access and transport. An alarm system that reports directly to a central station or the police department should be used. Security guards may be appropriate in some areas. The operator may own one or more boats. There may also be a rental boat exposure.
Ocean marine exposure includes the dock and any owned vessels. Piers and docks may be susceptible to weather perils as well as damage from vessels. Hoisting exposures seaside may be similar to those under inland marine, but the loss potential is often significantly increased due to the higher value of ocean-going watercraft and the unpredictability of the ocean.
The insured may own one or more boats or other watercraft that are for personal use and/or rental. Ocean marine includes the liability exposures (as protection and indemnity coverage) so any rental operation can add a significant exposure.
Business auto exposure may be limited to hired and non-owned for employees running errands to pick up parts for repair operations. All employee drivers should have appropriate licenses with their MVRs regularly checked. All vehicles must be regularly maintained with records retained. There should be written procedures for personal and permissive use of vehicles furnished to employees.
If the dealership offers pickup and delivery of watercraft to its customers, the exposure increases. Transportation hazards include failure to secure the load properly, and equipment failure, especially tie-downs and hitches. Drivers must be trained to transport oversized loads that can shift on the road. Random drug and alcohol testing should be conducted.
What Does Boat Repair And Dry Dock Insurance Cover & Pay For?
Boat repair and dry dock contractors may be sued for various reasons, including:
Property damage - If a contractor damages a customer's boat or other property while performing repairs, the customer may sue for damages. If a contractor damages a customer's boat or other property while performing repairs, their insurance policy may cover the cost of repairs or replacement.
Bodily injury - If a customer or employee is injured while on the premises of a boat repair or dry dock facility, the contractor may be held liable for medical expenses and other damages. If a customer or employee is injured while on the premises of a boat repair or dry dock facility, the contractor's insurance policy may cover medical expenses and other damages.
Breach of contract - If a contractor fails to perform work as agreed upon or breaches a contract in some other way, they may be sued for breach of contract. If a contractor is sued for breach of contract, their insurance policy may cover the cost of legal fees and damages awarded to the plaintiff.
Negligence - If a contractor fails to follow proper safety procedures or is otherwise negligent in their work, they may be sued for damages resulting from their actions. If a contractor is sued for negligence, their insurance policy may cover the cost of legal fees and damages awarded to the plaintiff.
Insurance can help protect boat repair and dry dock contractors from lawsuits by providing coverage for these types of claims. For example:
Overall, having insurance coverage can help protect boat repair and dry dock contractors from the financial impact of lawsuits and other legal claims. It is important for contractors to review their insurance policies carefully to ensure they have adequate coverage for their specific needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3731 Ship Building And Repairing, 3732 Boat Building And Repairing
- NAICS CODE: 336611 Ship Building and Repairing, 48839 Other Support Activities for Water Transportation, 81149 Other Personal and Household Goods Repair and Maintenance
- Suggested Workers Compensation Code(s): 6872F, 6874F, 6882 Ship Repair Conversion - All Operations & Drivers. Coverage under State Act only, 6824F, 6834 Boatbuilding or Repair & Drivers
Description for 3731: Ship Building And Repairing
Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 373: Ship And Boat Building And Repairing
3731 Ship Building And Repairing: Establishments primarily engaged in building and repairing ships, barges, and lighters, whether self-propelled or towed by other craft. This industry also includes the conversion and alteration of ships and the manufacture of off-shore oil and gas well drilling and production platforms (whether or not self-propelled). Establishments primarily engaged in fabricating structural assemblies or components for ships, or subcontractors engaged in ship painting, joinery, carpentry work, and electrical wiring installation, are classified in other industries.
- Barges, building and repairing
- Cargo vessels, building and repairing
- Combat ships, building and repairing
- Crew boats, building and repairing
- Dredges, building and repairing
- Drilling and production platforms, floating, oil and gas
- Drydocks, floating
- Ferryboats, building and repairing
- Fireboats, building and repairing
- Fishing vessels, large: seiners and trawlers-building and repairing
- Hydrofoil vessels
- Landing ships, building and repairing
- Lighters, marine: building and repairing
- Lighthouse tenders, building and repairing
- Marine rigging
- Naval ships, building and repairing
- Offshore supply boats, building and repairing
- Passenger-cargo vessels, building and repairing
- Patrol boats, building and repairing
- Radar towers, floating
- Sailing vessels, commercial: building and repairing
- Scows, building and repairing
- Seiners, building and repairing
- Shipbuilding and repairing
- Submarine tenders, building and repairing
- Tankers (ships), building and repairing
- Tenders (ships), building and repairing
- Towboats, building and repairing
- Transport vessels, passenger and troop: building and repairing
- Trawlers, building and repairing
- Tugboats, building and repairing
Description for 3732: Boat Building And Repairing
Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 373: Ship And Boat Building And Repairing
3732 Boat Building And Repairing: Establishments primarily engaged in building and repairing boats. Establishments primarily engaged in manufacturing rubber and nonrigid plastics boats are classified in Major Group 30. Establishments primarily engaged in operating marinas and which perform incidental boat repair are classified in Transportation, Industry 4493; membership yacht clubs are classified in Services, Industry 7997; and those performing outboard motor repair are classified in Services, Industry 7699.
- Boat kits, not a model
- Boats, fiberglass: building and repairing
- Boats, rigid: plastics
- Boats: motorboats, sailboats, rowboats, and canoes-building and
- Canoes, building and repairing
- Dinghies, building and repairing
- Dories, building and repairing
- Fishing boats, small
- Houseboats, building and repairing
- Hydrofoil boats
- Kayaks, building and repairing
- Life boats, building and repairing
- Life rafts, except inflatable (rubber and plastics)
- Motorboats, inboard and outboard: building and repairing
- Pontoons, except aircraft and inflatable (rubber and plastics)
- Skiffs, building and repairing
Boat Repair And Dry Dock Insurance - The Bottom Line
To discover the types of boat repair and dry dock insurance policies you'll need, how much coverage you should carry and the cost - consult with a reputable broker that is experienced in commercial insurance.
Additional Resources For Marine, Boat And Watercraft Insurance
Learn about marine, boat and watercraft insurance - a specialized form insurance that provides coverage for hull losses, cargo losses as well as liability for passenger injuries, environmental damage, and third-party damage caused by watercraft accidents.
- Insurance Nautical Terms Glossary
- Boat Dealers
- Boat Repair & Dry Docks
- Dock & Pier Contractors
- Dredging Contractors
- Ocean Marine
- Ship Chandlers
- Boat & Watercraft Insurance
- Specialty Marine
The boat and watercraft industry, like any other industry, needs marine insurance to protect against a range of potential risks and liabilities. These risks can include accidents or injuries on the water, damage to boats or watercraft, and financial losses due to unforeseen circumstances.
One major risk in the boat and watercraft industry is the potential for accidents or injuries on the water. Whether it's a collision with another vessel, a capsizing, or a passenger falling overboard, accidents can happen at any time. Marine insurance can help cover the costs of medical expenses, legal fees, and damages resulting from such accidents, protecting the business from financial ruin.
Another risk is damage to boats or watercraft. Whether it's due to storms, accidents, or wear and tear, damage to these vehicles can be costly to repair or replace. Marine insurance can help cover these costs, ensuring that the business can continue operating without incurring significant financial losses.
In addition to these risks, the boat and watercraft industry is also subject to a range of financial risks, such as lost income due to unforeseen circumstances or damage to business property. Marine insurance can help protect against these risks, ensuring that the business is able to weather any storms and continue operating in the face of unexpected challenges.
Overall, marine insurance is an essential part of running a successful boat and watercraft business. It helps protect against a range of risks and liabilities, ensuring that the business is able to weather any storms and continue operating smoothly.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Bailees Customers, Computers, Contractors' Equipment, Mobile Equipment, Valuable Papers and Records, Ocean Marine – Hull, Ocean Marine – Protection and Indemnity, General Liability, Employee Benefits Liability, Environmental Impairment, Umbrella, Hired and Non-Owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Burglary, Computer Fraud, Forgery, Robbery, Goods in Transit, Signs, Ocean Marine - Hull, Cyber Liability, Employment-related Practices, Liquor Liability, Ocean Marine - Protection and Indemnity, Business Automobile Liability and Physical Damage, Longshore and Harborworkers Compensation Act and Stop Gap Liability.